2014 Ohio 4320
Ohio Ct. App.2014Background
- In 1962 the Shepherds' predecessors reserved oil & gas rights when conveying ~137 acres; later deeds (1986 Shell, 1992 R&F) conveyed surface/coal and restated that reservation.
- Vernon and Susan Tribett acquired 61 surface acres (1996, 2006) and in 2011 published a notice of abandonment under Ohio's Dormant Mineral Act (ODMA); Shepherd descendants filed an affidavit to preserve in October 2011.
- Tribetts sued in April 2012 for quiet title and declaratory judgment; both sides moved for summary judgment.
- Trial court: held both 1989 and 2006 ODMA versions relevant, found 1986/1992 deeds were not “subject of” a title transaction (so not savings events), found Tribetts failed strict notice under 2006 ODMA but concluded minerals vested in surface owners under the 1989 ODMA and quieted title to Tribetts.
- On appeal the Shepherds challenged the applicability/constitutionality of the 1989 ODMA and argued deeds were savings events; Tribetts cross-appealed the trial court’s 2006-ODMA notice ruling.
Issues
| Issue | Plaintiff's Argument (Tribett) | Defendant's Argument (Shepherds) | Held |
|---|---|---|---|
| Whether 1986/1992 deeds were "subject of" a title transaction (savings event) | Deeds were recorded and reference mineral reservation, so they prevent abandonment | Mere restatement of an earlier reservation is sufficient; any recorded transaction affecting an interest in land qualifies | Held: not savings events — restatement of reservation in surface conveyance is not "subject of" the title transaction under ODMA; Dodd/Walker precedents followed |
| Which ODMA version controls (1989 vs 2006) | Tribetts relied on 1989 vesting; alternatively used 2006 procedures | Shepherds argued only 2006 governs and affords holders greater protection | Held: 1989 ODMA can still operate to vest minerals prior to 2006 amendments; 1989 was applied to deem minerals vested in surface owners |
| Whether application of 1989 ODMA is time-barred by R.C. 2305.04 (21-year statute) | Quiet-title action was to remove cloud on title after statutory vesting; suit timely | 21-year limitations expired before suit | Held: limitations did not bar the suit because the cause accrued upon expiration of 3-year grace period (March 22, 1992), so 21-year window extended to March 22, 2013; suit filed April 2012 was timely |
| Constitutionality of 1989 ODMA (retroactivity/taking) | Tribetts relied on Texaco; act is constitutional and self-executing | Shepherds argued 1989 ODMA effects a retroactive forfeiture violating Ohio Constitution and lacks required notice | Held: majority held 1989 ODMA constitutional (Texaco controlling); dissent disagreed, arguing Ohio Constitution provides greater protection and the 1989 ODMA is unconstitutional as applied |
Key Cases Cited
- Texaco Inc. v. Short, 454 U.S. 516 (U.S. 1982) (upholding a state dormant-mineral statute against federal due-process/takings challenge)
- City of Norwood v. Horney, 110 Ohio St.3d 353 (Ohio 2006) (discussing heightened Ohio constitutional protection for private property)
- State ex rel. Jordan v. Indus. Comm., 120 Ohio St.3d 412 (Ohio 2008) (definition and protection of vested rights)
- Davis v. State Personnel Bd. of Rev., 64 Ohio St.2d 102 (Ohio 1980) (principle that specific statute controls over general when irreconcilable)